Written by ForexBrokers.com
In this head to head comparison of Interactive Brokers vs FXCM, we will compare the trading platforms, mobile apps, range of investments, costs, market research, and more. Let's dive in.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Interactive Brokers, established in 1977, and FXCM, founded in 1999, are both reputable platforms for online trading. Interactive Brokers is publicly traded and holds nine Tier-1 licenses, which are top indicators of trustworthiness, along with two Tier-2 licenses. It boasts a perfect Trust Score rating of 99 out of 99, suggesting a highly trusted status. In contrast, FXCM, also publicly traded, has four Tier-1 licenses and two Tier-2 licenses, with a strong but slightly lower Trust Score of 95. Neither platform operates as a bank, ensuring they focus solely on brokerage services.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Year Founded | 1977 | 1999 |
| Publicly Traded (Listed) | Yes | Yes |
| Bank | No | No |
| Tier-1 Licenses | 9 | 4 |
| Tier-2 Licenses | 2 | 2 |
| Tier-3 Licenses | 0 | 0 |
| Tier-4 Licenses | 0 | 0 |
When comparing the commissions and fees of Interactive Brokers and FXCM, potential forex traders should note some key distinctions between these two brokers. Interactive Brokers is celebrated for offering competitive pricing; however, its average forex spreads are not publicly disclosed. For example, during the third quarter of 2024, the average spread for EUR/USD was found to be 0.59 pips, inclusive of commission. Their model charges commissions per side starting at 0.00002 of the U.S. dollar trade value, with a minimum fee of $2 per order. Active traders benefit from potential cost reductions, with commission fees potentially going as low as $1 per order for high-volume trading. Interactive Brokers is rated 5 stars and ranks #2 among 63 brokers for commissions and fees.
FXCM, meanwhile, provides competitive forex spreads, although they are slightly above average industry levels. During May 2024, the average EUR/USD spread was 0.78 pips in key regions like the EU, U.K., and Australia. FXCM also offers a commission-based account option with an average spread of 0.28 pips, excluding commissions. FXCM's Active Trader Rebate Program introduces tiered rebates, offering traders the chance to receive a rebate of up to $25 per million traded, though such offers are not available across all regions. This approach positions FXCM with a 4-star rating and a #24 ranking for commissions and fees according to ForexBrokers.com.
Both brokers cater to active traders, although Interactive Brokers offers a more comprehensive discount structure for exceptionally high trading volumes. FXCM’s tiered rebates are beneficial, although they require specific trading volumes and account balances. When contrasting these brokers, individuals need to consider their trading frequencies and volume expectations to select the most cost-effective option for their forex trading activities.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Minimum Deposit | $0 | Starts from $50 |
| Average Spread EUR/USD - Standard | 0.59 | 0.78 |
| All-in Cost EUR/USD - Active | 0.59 | 0.78 |
| Active Trader or VIP Discounts | Yes | Yes |
| ACH or SEPA Transfers | Yes | Yes |
| PayPal (Deposit/Withdraw) | No | Yes |
| Skrill (Deposit/Withdraw) | No | Yes |
| Visa/Mastercard (Credit/Debit) | No | Yes |
| Bank Wire (Deposit/Withdraw) | Yes | Yes |
Dive deeper: Best Low Spread Forex Brokers.
Interactive Brokers and FXCM both provide forex trading as a CFD or spot contract, making them appealing to traders interested in this market. However, the range of investments they offer sharply differs. Interactive Brokers boasts a vast selection, with 8,500 tradeable symbols and 90 forex pairs, whereas FXCM provides a smaller range, with only 440 tradeable symbols and 43 forex pairs. This diversity extends beyond forex; Interactive Brokers allows customers to access U.S. exchange traded securities, such as Apple shares, and international offerings like Vodafone shares. In contrast, FXCM does not support direct trading in these markets, limiting investors to CFDs.
Moreover, Interactive Brokers outperforms in cryptocurrency, enabling users to purchase actual and derivative cryptocurrencies. FXCM, meanwhile, only offers cryptocurrency derivatives. While FXCM has the advantage with copy trading options, Interactive Brokers stands out in its investment range, earning a 5-star rating compared to FXCM's 3.5 stars. These offerings reflect in their ForexBrokers.com rankings, where Interactive Brokers takes the top spot at #1 for the range of investments, while FXCM is placed at #47. Therefore, Interactive Brokers is particularly advantageous for investors seeking comprehensive market access and diversity in their trading portfolio.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes |
| Tradeable Symbols (Total) | 8500 | 440 |
| Forex Pairs (Total) | 90 | 43 |
| U.S. Stock Trading (Non CFD) | Yes | No |
| Int'l Stock Trading (Non CFD) | Yes | No |
| Social Trading / Copy Trading | No | Yes |
| Cryptocurrency (Physical) | Yes | No |
| Cryptocurrency (Derivative) | Yes | Yes |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
Dive deeper: Best Copy Trading Platforms.
Interactive Brokers and FXCM both provide excellent trading platforms and tools with a variety of features suitable for different trading styles. Both brokers offer simulated trading with a free virtual demo account, and have developed proprietary trading platforms in-house. Accessible through both Windows desktop download and web-based platforms, Interactive Brokers and FXCM cater to different user preferences. However, while Interactive Brokers supports trading directly from stock charts and offers an impressive 659 watch list columns, FXCM stands out with copy trading options and the popular MetaTrader 4 platform, offering a more social trading experience.
Although neither broker supports MetaTrader 5 or DupliTrade, FXCM provides enhanced social trading opportunities with ZuluTrade. In terms of charting tools, Interactive Brokers leads with 85 drawing tools, compared to FXCM's 10, a noteworthy difference for traders who rely on detailed chart analyses. Both brokers achieve high acclaim for their platforms and tools, each receiving a 5-star rating. When ranked against 63 brokers by ForexBrokers.com, Interactive Brokers is placed at #3 while FXCM follows closely at #6, illustrating a slightly higher user preference for Interactive Brokers' comprehensive tools set.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Virtual Trading (Demo) | Yes | Yes |
| Proprietary Platform | Yes | Yes |
| Desktop Platform (Windows) | Yes | Yes |
| Web Platform | Yes | Yes |
| Social Trading / Copy Trading | No | Yes |
| MetaTrader 4 (MT4) | No | Yes |
| MetaTrader 5 (MT5) | No | No |
| DupliTrade | No | No |
| ZuluTrade | No | Yes |
| Charting - Indicators / Studies (Total) | 155 | 115 |
| Charting - Drawing Tools (Total) | 85 | 10 |
| Charting - Trade From Chart | Yes | Yes |
| Watchlists - Total Fields | 659 | 13 |
Dive deeper: Best MetaTrader 4 Brokers, Best MetaTrader 5 Brokers.
Interactive Brokers and FXCM both offer mobile trading apps for iPhone and Android, catering to users keen on trading on the go. Both platforms allow users to set stock and forex price alerts, create watchlists with real-time quotes, and offer seamless watchlist syncing between the app and online accounts. When it comes to charting tools, Interactive Brokers provides a more extensive suite with 97 technical studies compared to FXCM's 59, yet both allow drawing trendlines and viewing multiple time frames for comprehensive analysis. However, FXCM has the edge in user convenience by auto-saving chart drawings, a feature absent in Interactive Brokers' app.
In terms of user ratings, Interactive Brokers outshines FXCM by receiving a full 5-star rating for its mobile trading app, compared to FXCM's 4.5 stars. Additionally, ForexBrokers.com ranks Interactive Brokers as the 4th best among 63 brokers under the Mobile Trading Apps category, while FXCM holds the 16th spot. This suggests that while both apps offer substantial features for traders, Interactive Brokers is perceived as providing a slightly more superior mobile trading experience.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Android App | Yes | Yes |
| Apple iOS App | Yes | Yes |
| Mobile Alerts - Basic Fields | Yes | Yes |
| Watchlist Syncing | Yes | Yes |
| Mobile Charting - Indicators / Studies | 97 | 59 |
| Mobile Charting - Draw Trendlines | Yes | Yes |
| Mobile Charting - Multiple Time Frames | Yes | Yes |
| Mobile Charting - Drawings Autosave | No | Yes |
| Mobile Watchlist | Yes | Yes |
Dive deeper: Best Forex Trading Apps.
When comparing Interactive Brokers and FXCM in terms of market research offerings, both platforms provide daily market commentary and access to forex news from esteemed sources such as Bloomberg and Reuters, ensuring traders stay informed with the latest updates. Additionally, both brokers offer technical analysis tools from Trading Central, as well as sentiment-based trading tools that display the ratio of long and short positions on various instruments. They also each include an economic calendar to track global news events, essential for traders who want to align their strategies with market movements. However, a difference arises with research tools from Acuity Trading, where Interactive Brokers holds an advantage, offering access to features like Signal Centre, which is not available with FXCM.
Evaluating their research quality, Interactive Brokers receives a stellar rating of 5 stars, marking it as a top choice for in-depth market analysis. It ranks impressively as the third broker out of 63 for research on ForexBrokers.com. On the other hand, FXCM offers reliable market insights with a notable rating of 4.5 stars, securing the 11th position for research in the same review. This distinction highlights Interactive Brokers’ slightly superior standing in research offerings, making it a preferred option for traders who prioritize state-of-the-art research features and comprehensive market analysis.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Daily Market Commentary | Yes | Yes |
| Forex News (Top-Tier Sources) | Yes | Yes |
| Autochartist | No | No |
| Trading Central (Recognia) | Yes | Yes |
| Social Sentiment - Currency Pairs | Yes | Yes |
| TipRanks | Yes | Yes |
| Signal Centre (Acuity Trading) | Yes | No |
| Economic Calendar | Yes | Yes |
Dive deeper: Best Brokers for Forex Research.
When comparing the educational resources offered by Interactive Brokers and FXCM for beginners, both online brokers emerge as strong contenders, offering a wide variety of learning materials. Interactive Brokers and FXCM each provide over 10 educational pieces focused on forex and CFDs, catering to those eager to learn. They both host monthly webinars and maintain archives of past sessions, making it easy for beginners to catch up or review material. Additionally, each broker supports beginners with at least 10 targeted educational videos, simplifying complex trading topics.
Furthermore, both Interactive Brokers and FXCM extend their resources with over 10 advanced videos for more experienced traders, along with investor dictionaries containing definitions of at least 50 investing terms to help broaden your financial vocabulary. Despite these similarities, Interactive Brokers stands out with a 5-star rating in education compared to FXCM's 4.5 stars. Ranked 3rd out of 63 brokers by ForexBrokers.com in the education category, Interactive Brokers leads over FXCM, which holds the 14th place.
| Feature |
Interactive Brokers
|
FXCM
|
|---|---|---|
| Education (Forex or CFDs) | Yes | Yes |
| Client Webinars | Yes | Yes |
| Client Webinars (Archived) | Yes | Yes |
| Videos - Beginner Trading Videos | Yes | Yes |
| Videos - Advanced Trading Videos | Yes | Yes |
| Investor Dictionary (Glossary) | Yes | Yes |
Dive deeper: Best Forex Brokers for Beginners.
After testing 63 of the best forex brokers, our research and account testing finds that Interactive Brokers is better than FXCM. Interactive Brokers finished with an overall rank of #2, while FXCM finished with an overall rank of #15.
Interactive Brokers is a highly trusted multi-asset broker with an extensive offering of tradeable global markets. It delivers competitive fees and high-quality research and education, as well as a modern, institutional-grade trading platform suite.
| Feature |
Interactive Brokers
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FXCM
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|---|---|---|
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| Trust Score | 99 | 95 |
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Interactive Brokers allows users to buy actual delivered cryptocurrency and cryptocurrency derivatives, whereas FXCM offers only the ability to trade cryptocurrency derivatives, not actual delivered cryptocurrencies.
Interactive Brokers and FXCM both support ACH and SEPA transfers as well as bank wires for account funding and withdrawal; however, unlike Interactive Brokers, FXCM also supports PayPal, Skrill, and Visa or Mastercard, offering more diverse payment options.
Please note:
We review each broker’s overall global offering – a “Yes” checkmark in our Compare Tool does not guarantee the availability of any specific features in your country of residence. To verify the availability of any features within your country of residence, please contact the broker directly.
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0 of 5| Overall Rating | Interactive Brokers | FXCM | |
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| Trust Score | 99 | 95 | |
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| Review | Interactive Brokers Review | FXCM Review |
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| Regulation | Interactive Brokers | FXCM | |
|---|---|---|---|
| Trust Score | 99 | 95 | |
| Year Founded | 1977 | 1999 | |
| Publicly Traded (Listed) | Yes | Yes | |
| Bank | No | No | |
| Regulated in one or more EU or EEA countries (MiFID). | Yes | Yes | |
| Tier-1 Licenses | 9 | 4 | |
| Tier-2 Licenses | 2 | 2 | |
| Tier-3 Licenses | 0 | 0 | |
| Tier-4 Licenses | 0 | 0 |
| Tier-1 Licenses (Highly Trusted) | Interactive Brokers | FXCM | |
|---|---|---|---|
| Australia (ASIC Authorised) | Yes | Yes | |
| Canada (CIRO Authorised) | Yes | Yes | |
| Hong Kong (SFC Authorised) | Yes | No | |
| Japan (SFC Authorised) | Yes | No | |
| Singapore (MAS Authorised) | Yes | No | |
| Switzerland (FINMA Authorised) | Yes | No | |
| United Kingdom (U.K.) (FCA Authorised) | Yes | Yes | |
| USA (CFTC Authorized) | Yes | No | |
| New Zealand (FMA Authorised) | No | No | |
| Regulated in one or more EU or EEA countries (MiFID). | Yes | Yes |
| Tier-2 Licenses (Trusted) | Interactive Brokers | FXCM | |
|---|---|---|---|
| Kenya (CMA Authorised) | No | No | |
| Israel (ISA Authorised) | No | Yes | |
| South Africa (FSCA Authorised) | No | Yes | |
| UAE (DFSA/Central Bank Authorised) | Yes | No | |
| India (SEBI Authorised) | Yes | No | |
| Jordan (JSC Authorised) | No | No |
| Investments | Interactive Brokers | FXCM | |
|---|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes | |
| Tradeable Symbols (Total) | 8500 | 440 | |
| Forex Pairs (Total) | 90 | 43 | |
| U.S. Stock Trading (Non CFD) | Yes | No | |
| Int'l Stock Trading (Non CFD) | Yes | No | |
| Social Trading / Copy Trading | No | Yes | |
| Cryptocurrency (Physical) | Yes | No | |
| Cryptocurrency (Derivative) | Yes | Yes | |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
| Cost | Interactive Brokers | FXCM | |
|---|---|---|---|
| Average Spread EUR/USD - Standard | 0.59 | 0.78 | |
| All-in Cost EUR/USD - Active | 0.59 | 0.78 | |
| Active Trader or VIP Discounts | Yes | Yes | |
| Inactivity Fee | No | Yes | |
| Execution: Agency Broker | Yes | Yes | |
| Execution: Market Maker | No | Yes |
| Funding | Interactive Brokers | FXCM | |
|---|---|---|---|
| Minimum Deposit | $0 | Starts from $50 | |
| PayPal (Deposit/Withdraw) | No | Yes | |
| Skrill (Deposit/Withdraw) | No | Yes | |
| Visa/Mastercard (Credit/Debit) | No | Yes | |
| Bank Wire (Deposit/Withdraw) | Yes | Yes | |
| ACH or SEPA Transfers | Yes | Yes |
| Trading Platforms | Interactive Brokers | FXCM | |
|---|---|---|---|
| Proprietary Platform | Yes | Yes | |
| Desktop Platform (Windows) | Yes | Yes | |
| Web Platform | Yes | Yes | |
| Social Trading / Copy Trading | No | Yes | |
| MetaTrader 4 (MT4) | No | Yes | |
| MetaTrader 5 (MT5) | No | No | |
| cTrader | No | No | |
| DupliTrade | No | No | |
| ZuluTrade | No | Yes |
| Trading Tools | Interactive Brokers | FXCM | |
|---|---|---|---|
| Virtual Trading (Demo) | Yes | Yes | |
| Alerts - Basic Fields | Yes | Yes | |
| Watchlists - Total Fields | 659 | 13 | |
| Charting - Indicators / Studies (Total) | 155 | 115 | |
| Charting - Drawing Tools (Total) | 85 | 10 | |
| Charting - Trade From Chart | Yes | Yes | |
| Charts can be saved | Yes | Yes |
| Mobile Trading | Interactive Brokers | FXCM | |
|---|---|---|---|
| Android App | Yes | Yes | |
| Apple iOS App | Yes | Yes | |
| Mobile Alerts - Basic Fields | Yes | Yes | |
| Mobile Watchlist | Yes | Yes | |
| Watchlist Syncing | Yes | Yes | |
| Mobile Charting - Indicators / Studies | 97 | 59 | |
| Mobile Charting - Draw Trendlines | Yes | Yes | |
| Mobile Charting - Multiple Time Frames | Yes | Yes | |
| Mobile Charting - Drawings Autosave | No | Yes | |
| Mobile Economic Calendar | Yes | Yes |
| Research | Interactive Brokers | FXCM | |
|---|---|---|---|
| Daily Market Commentary | Yes | Yes | |
| Forex News (Top-Tier Sources) | Yes | Yes | |
| Autochartist | No | No | |
| Trading Central (Recognia) | Yes | Yes | |
| TipRanks | Yes | Yes | |
| Social Sentiment - Currency Pairs | Yes | Yes | |
| Economic Calendar | Yes | Yes |
| Education | Interactive Brokers | FXCM | |
|---|---|---|---|
| Education (Forex or CFDs) | Yes | Yes | |
| Client Webinars | Yes | Yes | |
| Client Webinars (Archived) | Yes | Yes | |
| Videos - Beginner Trading Videos | Yes | Yes | |
| Videos - Advanced Trading Videos | Yes | Yes | |
| Investor Dictionary (Glossary) | Yes | Yes |
| Major Forex Pairs | Interactive Brokers | FXCM | |
|---|---|---|---|
| GBP/USD | Yes | Yes | |
| USD/JPY | Yes | Yes | |
| EUR/USD | Yes | Yes | |
| USD/CHF | Yes | Yes | |
| USD/CAD | Yes | Yes | |
| NZD/USD | Yes | Yes | |
| AUD/USD | Yes | Yes | |
| Review | Interactive Brokers Review | FXCM Review |
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| Trust Score | 99 | 95 | |
| Winner | check_circle | ||
| Review | Interactive Brokers Review | FXCM Review |
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